ASEAN KEY DESTINATIONS
Philippine central bank sees slower growth
BSP Governor Amando Tetangco Jr. said the Philippine economy will continue to grow this year, although slower than earlier projections of between 7 percent and 8 percent.
He said the government’s assumption was arrived at prior to events such as the continued geopolitical tensions in the Middle East and North African (MENA) region, as well as the natural disaster in Japan that resulted in a nuclear crisis.
Tetangco said there would likely be a negative impact on global growth, which would affect all countries at least in the short term.
But given the rebuilding and reconstruction efforts to be done in Japan, there would be positive impact on the growth of the world economy in the medium to long term, he said.
“So, we may be affected by that and therefore we should not be surprised if the growth rate for this year turns out to be lower than the 7 percent to 8 percent target,” Tetangco told reporters.
The central bank earlier revised downward its economic growth forecast for the country to a range of 5 percent to 6 percent this year, which Tetangco said “is a reasonable figure in a situation like this.”
Separately, the National Economic and Development Authority had said the country’s economic target may be revised downward mostly because of the disaster in Japan and the political crisis in MENA.
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